Dandong companies can pay North Koreans in RMB

By Michael Rank

Companies in the Dandong area are no longer at the mercy of fluctuating foreign exchange rates and can now settle their accounts with North Korean companies in renminbi, according to a Chinese website.

Until recently companies conducting border trade with North Korea had to settle their accounts in US dollars, euros or yen, but in August 2010, 600 Dandong companies were permitted to do so in renminbi, and this has now been extended to all companies involved in border trade, investment and service industries, the report said.

It didn’t mention North Korea by name, but said the new rules apply to companies conducting border trade with any country, so they presumably apply Russia as well as the DPRK.